2017 to today
Depreciation on a property built in 2026
A residential building whose construction began in 2026 is deducted at 2.5% of its construction cost a year, for construction begun after 15 September 1987. Counting from 30 June 2026, its 40 years run from the 2026–27 income year to 2065–66, and from 2026–27 it has 40 income years left. Our national series puts new houses at $2,083 per m² of floor area in the year to 30 June 2026, 6% up on 2025's $1,967.
- Rate
- 2.5%
- Years left
- 40
- Last year
- 2065–66
What a house built in 2026 cost, state by state
A standard 200 m² single-storey brick veneer house at 2025 rates, less the builder's plant (2.7% of its cost that year), listed separately; the deduction is 2.5% of it a year.
| State | Rate per m² in 2025 | Construction cost | Deduction a year | Left to claim |
|---|---|---|---|---|
| New South Wales | $2,182 | $398,300 | $9,958 | $398,320 |
| Victoria | $1,846 | $336,880 | $8,422 | $336,880 |
| Queensland | $1,965 | $358,691 | $8,967 | $358,680 |
| Western Australia | $1,863 | $339,934 | $8,498 | $339,920 |
| South Australia | $1,381 | $251,998 | $6,300 | $252,000 |
| Tasmania | $2,160 | $394,184 | $9,855 | $394,200 |
| Australian Capital Territory | $1,928 | $351,892 | $8,797 | $351,880 |
| Northern Territory | $2,352 | $429,277 | $10,732 | $429,280 |
Our national series rests on published figures to 2025 so far, so the rates and costs shown for a house built in 2026 are 2025's. Indicative. "Left to claim" is the deduction a year times the 40 income years left; the first and last are usually part years.
The cost per m² around 2025
Our national series rests on published figures to 2025 so far, so this page prices a house built in 2026 at 2025's: $1,907 per m² for the standard house, or $347,938 for 200 m² less the plant listed separately. A report prices a house built in 2026 on the ABS construction price index's published quarters for it; this page moves to 2026's figures once a published figure pins our national series for it. How 2025's rate moved on the years before it is on the 2025 page.
The cost per m² around 2025Building in 2026, nationally
The ABS measure: the value of new houses built (land excluded) over their floor area, so it follows the kind of house as well as prices, and its 2026 is the year to 30 June 2026.
The rate per m²
Our national series projects new houses in the year to 30 June 2026 at $2,083 per m² of floor area, 6% up on 2025's $1,967 and 60% up over the ten years from 2016's $1,303.
The average new house
We put the average new house of 2026 at 241.5 m² of floor area, the ABS figure for 2025, the latest we hold: at 2026's $2,083 per m², it would cost about $503,000 to build.
How the figure was reached
How 2026's figure was arrived at: the 2025 figure carried forward 1 year by the ABS house construction output index. It rests on 1 source and is graded B, from A (a published figure) to D (an assumed rate of growth).
2026 in Division 43's history
- Counting the calendar year each began in as its first, 2026 is the 42nd year of capital works for homes (from 18 July 1985), the 40th year of the rate of 2.5% over 40 years (from 16 September 1987), the 35th year of structural improvements' claims (from 27 February 1992) and the 10th year of section 40-27 on second-hand plant (from 7.30 pm on 9 May 2017).
Where it stands in 2026–27
2026–27 is the 1st of its 40 income years at 2.5%. 40 income years, this one counted, carry 100% of its construction cost; none has passed yet. The first half of its years ends with 2045–46.
A kitchen replaced ten years on, in 2036, is new capital works with 40 years of its own, claimed until 2076: 10 years past 2026's own last income year, 2065–66. Every renovation since 2026 is the same, whatever the house's own date; its invoices and photos date it.
Renovating a rental built in 2026: the old plant and works Houses of 2017 to today beside the other years Using a previous owner's scheduleA standard house's plant, fitted new in 2026
In 2025 the builder's plant was about 2.7% of a standard house's cost, listed apart from the building; plant prices stood at 118% of 2020's by our plant index, and the ABS house construction price index for Australia stood at 142% of its June quarter 2020 level in the June quarter 2025. Fitted in 2026, with each life counted from 30 June 2026 as the building's years are, none below has passed its effective life, the first ending in 2033–34; a replacement bought new for a let property starts its own.
| Item | Installed new, 2025 prices | Effective life | Life ends, income year |
|---|---|---|---|
| Oven | $1,891 | 12 years | 2037–38 |
| Cooktop | $745 | 12 years | 2037–38 |
| Dishwasher | $1,261 | 8 years | 2033–34 |
| Electric hot water system | $1,714 | 12 years | 2037–38 |
| Carpet | $4,492 | 8 years | 2033–34 |
| Blinds | $1,714 | 10 years | 2035–36 |
Common questions
How much depreciation can I claim on a house built in 2026?
On a 2026 building, 2.5% of what it cost to construct, each year until 2065–66. For a standard 200 m² brick veneer house that is about $9,958 a year in New South Wales, $8,422 in Victoria and $8,967 in Queensland (at 2025's rates, the latest year our national series rests on a published figure for), with 40 income years left. Plant new to you adds to that, as does any renovation since 2026.
I bought a 2026 property second-hand. Does the deduction start again?
No: a 2026 building's 40 years run from its completion, not from your purchase, so a buyer claims the 40 income years left, 2026–27 to 2065–66, on the original construction cost rather than the price paid. Fitted new in 2026, none of the 181 kinds of plant our catalogue prices has passed its effective life yet; the first ends in 2027–28. A 2026 house has only ever been under section 40-27, from 7.30 pm on 9 May 2017: bought from an earlier owner, the plant that came with a 2026 house is generally not deductible (the 2017 rules set out who it reaches and the exceptions). Bought new, nobody having lived in it, its plant is generally deductible as well, provided no earlier owner could deduct for it, unless you live in it before renting it out.
What was the rate for 2026?
2.5% a year over 40 years, for construction begun after 15 September 1987: counting from 30 June 2026, the 2026–27 to 2065–66 income years. Construction begun on any day of 2026 qualifies, the window having opened on 16 September 1987, and none of its 40 income years has passed yet.
What did it cost to build a house in 2026?
In the year to 30 June 2026, our national series puts new houses at $2,083 per m² of floor area, 60% up over the ten years from 2016's $1,303, and the average new house, about 242 m², cost about $503,000 to build. At 2025's rates, the latest year our national series rests on a published figure for, our standard 200 m² single-storey brick veneer house, less the plant listed separately, cost about $347,938 at the national rate, against $345,172 in 2024. In 2025 it was cheapest in South Australia, at $251,998, and dearest in the Northern Territory, at $429,277. Where the 2026 build's own cost is not documented, a schedule estimates it at 2025's rates, about $347,938 for that house nationally, by an appropriately qualified person, as Taxation Ruling TR 97/25 accepts.
General information only, not advice about your circumstances. Speak to a registered tax agent before relying on it.